WASDE bullish corn, neutral soybeans, bearish wheat

The U.S. Department of Agriculture’s December World Agricultural Supply and Demand Estimates report was slightly bullish for corn, neutral for soybeans and slightly bearish for wheat, says an analyst. DTN market analyst Rhett Montgomery said the USDA boosted its estimate for U.S. corn exports by 125 million bushels to a record 3.2 billion bu., up 12 per cent from last year. That lowered ending stocks by 125 million bu. to 2.029 billion bu. The world stocks-to-use ratio is eight per cent when China and the United States is taken out of the mix. That is tight. “It’s a reason for optimism from an export demand standpoint,” he said during a Dec. 9 webinar. One has to go back to 1998 to find a ratio less than that. “It’s just a testament to the rampant demand for corn around the globe,” said Montgomery. Why it Matters: Strong corn demand is needed to mop up a massive U.S. crop. Brazil continues to see more domestic use from its ethanol and livestock sectors, which puts the U.S. in a ...